Decision details

Schools Funding Formula Changes

Purpose:

In line with DFE
guidance amendments are to be made to the funding formula that
supports the distribution of resources to schools.

Decision:

The Cabinet Member agrees that:

A) The minimum per pupil funding level for
secondary schools will increase to £4,800 and the minimum per
pupil funding level for primary schools will increase to
£3,500. The DFE have also introduced a new minimum level of
£5,100 for KS4 only schools.

This means that those schools that will
receive a minimum per pupil funding allocation less than these
levels under a fully implemented NFF would have their minimum per
pupil funding brought up to these levels in 2019-20. However, as
the DFE have capped NFF allocations to the LA, the total funding
allocated does not fully support these suggested minimum per pupil
funding values. It is therefore anticipated that the minimum per
pupil funding values used in our local formula will need to be
scaled back to avoid any overspend in the schools block funding
allocated to the LA.

B) The DFE will introduce a new funding floor
factor to enable local authorities to reflect the NFF calculation
of a minimum overall 1% per pupil increase in per pupil funding in
2019-20 compared to the 2017-18 per pupil funding baselines
provided by the DFE. This effectively overrides the MFG.

The Minimum per pupil Funding guarantee (MFG)
in the local formula for 2019-20 will be over written by the
introduction of a funding floor factor above.

Local authorities will however continue to
have the flexibility to set a local MFG between minus 1.5% and plus
0.5% per pupil for 2019-20.

The LA are proposing an MFG of a 0% change in
pupil funding in 2019-20 compared to 2018-19 in view of the
introduction of the new funding floor factor.

C) The DFE have enabled local authorities to
mirror the sparsity taper in local formula that has been used in
the NFF funding formula calculations. The LA believe this should be
followed to maintain the integrity of the Local Formula in line
with the NFF

D) Local authorities will no longer be able to
set a primary weighting for low prior attainment because all
results will have been assessed under the new framework and there
is therefore no longer a need to use a weighting. The DFE have also
have reduced the primary low prior attainment NFF factor value to
£1,022 to balance the increase in the cohort.

E) The DFE will allow Local authorities to set
a cap on gains so that schools gain the greater of either 3% of
their 2018 to 2019 baseline, or 20% of their remaining gains. The
LA is proposing to remove the cap on gains for 2019-20 to allow the
funds available to flow through to schools during the transition to
the NFF.

F) The English as an additional language (EAL)
factor is allocated for pupils identified in the October census
with a first language other than English for up to three years
after they enter the statutory school system.

Local authorities can choose to use indicators
based on one, two, or three years, and there can be separate unit
values for primary and secondary

B&NES has used the indicator based on one
year and propose to change this to the indicator based on three
years as the DFE have used this indicator in the national funding
formula.

Reasons for the decision:

The decision to adopt the changes is in line
with the consultation responses and the recommendation of the
Schools Forum.

Alternative options considered:

Various options considered but mainly to leave
the formula unchanged from current form or follow the DFE guidance
in preparation for a National Funding Formula.